€5 million EBRD loan to Raiffeisen Bank Kosovo to increase green funding for local businesses
- EBRD credit line of €5 million blended with EU funded investment incentives for MSMEs in Kosovo
- At least one-third of the projects to support investments in agribusiness sector
- 25 per cent of the beneficiaries to be women-led MSMEs
The European Bank for Reconstruction and Development (EBRD) is scaling up green economy investments in Kosovo in cooperation with the European Union (EU) and Raiffeisen Bank Kosovo.
The EBRD will provide financing of up to €5 million to Raiffeisen Bank in Kosova for on-lending to micro, small and medium-sized enterprises under the SME Go Green programme, launched with the support of the EU.
The funds are fully dedicated to green economy investments, including energy efficiency, resource efficiency and renewable energy investments, expected to contribute to the reduction of greenhouse gases emissions in the country.
Local businesses will have the opportunity to apply for financing to invest in industrial premises, equipment, software, electric vehicles or renewable energy measures.
At least one-third of the EBRD loan to Raiffeisen Bank in Kosova will be dedicated to the investments within agribusiness value chain. Twenty-five
per cent of the financing will go to women-led MSMEs.
On successful completion of their investment projects, MSMEs will be eligible for a cashback grant of 10 per cent of the loan amount, or 15 per cent for investments in renewable energy and the agribusiness value chain.
EBRD Head of Kosovo Maslichenko said: “We are proud to continue our support for MSMEs in Kosovo, a vital component of the country’s economy, with various programmes tailored to their needs. This initiative is key to push forward the green transition at a granular level, helping local businesses achieve sustainability and enhance their resilience. With the EU and Raiffeisen Bank Kosovo as our partners, we are well-positioned to foster a greener private sector in the country."
Raiffeisen is the largest commercial bank in Kosovo and an EBRD partner since 2019, with a proven track record with SME credit lines.
Raiffeisen Bank in Kosova CEO, Ms. Anita Kovacic, said: “We're pleased to continue our longstanding partnership with the EBRD on this program empowering Kosovo’s businesses, especially women-led ones, to adopt sustainable practices. Micro and Small businesses are Kosovo's economic backbone, and we're committed to supporting their growth and sustainability.”
RBKO becomes the first partner financial institution in Kosovo to benefit from the EBRD SME Go Green programme following its official country launch in September 2024.
The EBRD is the largest institutional investor in Kosovo with projects in both private and public sector. The Bank has invested around €680 million through over 110 projects since starting operations in the country in 2012.